Suppose $1,200 is invested into an account bearing 5.23% interest, compound monthly.
Write an equation that will give the amount A in the account after t years.
What would be the amount if compound daily, quarterly and continuously?© BrainMass Inc. brainmass.com March 4, 2021, 11:01 pm ad1c9bdddf
If the interest is compounded monthly, then the monthly rate = 0.0523/12=0.004358
A(t) = 1200*(1+0.0523/12)^12t = ...
Interest variations are demonstrated in this solution.